IMPACT ON ECONOMY: RAHUL WITH RAJAN

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Raghuram Rajan, this name needs no introduction. Most of us know that he was a former RBI governor. Apart from this, he was also Chief Economist and Director of research at the International Monetary Fund between 2003-2006. Raghuram Rajan came into limelight after so many days when Congress Party leader Rahul Gandhi made a 30minutes question and answer session with him regarding lockdown, India economic conditions, steps that need to be taken by the government and Post-Indian conditions after lockdown. More or less he was the RBI governor for India during a period of time and his suggestions need to be considered by the government for sure. So, here are his suggestions in brief…

REGARDING JOBS AFTER LOCKDOWN…

During their conversation, Rahul Gandhi asked Rajan how would be India employment after lockdown. In return to this Rajan stated that the World economy is in worst condition than what I expected before the Coronavirus pandemic. India is also just at the edge of the downfall. The GDP growth rate for the next quarter is expected at 1.5% which is a decade low. In these conditions, nearly 10 crore people are a risk of losing their jobs and those who are already doing them will have a lot of questions in their minds regarding the future. So, he suggested that, the government should focus on creating jobs and securing the future of those who are already doing jobs.

FOR THE POOR ….

Talking about the help for poor Rajan gave a clear statement that apart from the central government help of 1.70 lakh crores there is a need of 65,000 crore help that is required for the poor people to get out of their tragedic situation. Regarding this, he quoted that the GDP of the country is around 200 lakh crores and 65,000 crores are the small amount before that. He also said that this help would not only help the poor for their livelihood during the lockdown but also gives them hope on their future.

MEASURES BEFORE & AFTER LIFTING LOCKDOWN …

The government imposing the lockdown can save lives for now but, in the long run, people will die due to lack of jobs and food. So, the government should formulate strict regulations in public transports, government and private offices, public places, and then lift the lockdown. He also stated that even after lifting the lockdowns day-to-day testing should go on. He quoted the testing of the USA who is now performing 1.5 lakh tests a day and comparing with this India’s testing is par low when compared with our population. 

ECONOMICAL BENEFITS INDIA COULD FETCH…

In the viewpoint of economic benefits, Rajan said that India may not get many manufacturing units that want to shift from China. But, India’s supply Chain may get benefited from this if planned appropriately. It is believed that manufacturing and supply chain units are going to get shifted from China. India may not have skilled labor in the manufacturing units but has a good extent of development in Supply Chain management.

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